The Dynamics of Depletion

27 06 2017

Originally published on the Automatic Earth, this further article on ERoEI and resource depletion ties all the things you need to understand about Limits to Growth in one neat package. 

Over the years, I have written many articles on the topic of EROEI (Energy Return on Energy Invested); there’s a whole chapter on it in the Automatic Earth Primer Guide 2017 that Nicole Foss assembled recently, which contains 17 well worth reading articles.

Since EROEI is still the most important energy issue there is, and not the price of oil or some new gas find or a set of windmills or solar panels or thorium as the media will lead you to believe, it can’t hurt to repeat it once again. Brian Davey wrote this item on his site CredoEconomics, it is part of his book “Credo”.

The reason I believe it can’t hurt to repeat this is because not nearly enough people understand that in the end, everything, the survival of our world, our way of life, is all about the ‘quality’ of energy, and about what we get in return when we drill and pump and build infrastructure; what remains when we subtract all the energy used to ‘generate’ energy, from (or at) the bottom line is all that’s left…….

nicolefoss

Nicole Foss

Nicole Foss: Energy is the master resource – the capacity to do work. Our modern society is the result of the enormous energy subsidy we have enjoyed in the form of fossil fuels, specifically fossil fuels with a very high energy profit ratio (EROEI). Energy surplus drove expansion, intensification, and the development of socioeconomic complexity, but now we stand on the edge of the net energy cliff. The surplus energy, beyond that which has to be reinvested in future energy production, is rapidly diminishing.

We would have to greatly increase gross production to make up for reduced energy profit ratio, but production is flat to falling so this is no longer an option. As both gross production and the energy profit ratio fall, the net energy available for all society’s other purposes will fall even more quickly than gross production declines would suggest. Every society rests on a minimum energy profit ratio. The implication of falling below that minimum for industrial society, as we are now poised to do, is that society will be forced to simplify.

A plethora of energy fantasies is making the rounds at the moment. Whether based on unconventional oil and gas or renewables (that are not actually renewable), these are stories we tell ourselves in order to deny that we are facing any kind of future energy scarcity, or that supply could be in any way a concern. They are an attempt to maintain the fiction that our society can continue in its current form, or even increase in complexity. This is a vain attempt to deny the existence of non-negotiable limits to growth. The touted alternatives are not energy sources for our current society, because low EROEI energy sources cannot sustain a society complex enough to produce them.

 

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Using Energy to Extract Energy – The Dynamics of Depletion

 

brian-selfie

Brian Davey

Brian Davey: The “Limits to Growth Study” of 1972 was deeply controversial and criticised by many economists. Over 40 years later, it seems remarkably prophetic and on track in its predictions. The crucial concept of Energy Return on Energy Invested is explained and the flaws in neoclassical reasoning which EROI highlights.

The continued functioning of the energy system is a “hub interdependency” that has become essential to the management of the increasing complexity of our society. The energy input into the UK economy is about 50 to 70 times as great as what the labour force could generate if working full time only with the power of their muscles, fuelled up with food. It is fossil fuels, refined to be used in vehicles and motors or converted into electricity that have created power inputs that makes possible the multiple round- about arrangements in a high complex economy. The other “hub interdependency” is a money and transaction system for exchange which has to continue to function to make vast production and trade networks viable. Without payment systems nothing functions.

Yet, as I will show, both types of hub interdependencies could conceivably fail. The smooth running of the energy system is dependent on ample supplies of cheaply available fossil fuels. However, there has been a rising cost of extracting and refining oil, gas and coal. Quite soon there is likely to be an absolute decline in their availability. To this should be added the climatic consequences of burning more carbon based fuels. To make the situation even worse, if the economy gets into difficulty because of rising energy costs then so too will the financial system – which can then have a knock-on consequence for the money system. The two hub interdependencies could break down together.

“Solutions” put forward by the techno optimists almost always assume growing complexity and new uses for energy with an increased energy cost. But this begs the question- because the problem is the growing cost of energy and its polluting and climate changing consequences.

 

The “Limits to Growth” study of 1972 – and its 40 year after evaluation

It was a view similar to this that underpinned the methodology of a famous study from the early 1970s. A group called the Club of Rome decided to commission a group of system scientists at the Massachusetts Institute of Technology to explore how far economic growth would continue to be possible. Their research used a series of computer model runs based on various scenarios of the future. It was published in 1972 and produced an instant storm. Most economists were up in arms that their shibboleth, economic growth, had been challenged. (Meadows, Meadows, Randers, & BehrensIII, 1972)

This was because its message was that growth could continue for some time by running down “natural capital” (depletion) and degrading “ecological system services” (pollution) but that it could not go on forever. An analogy would be spending more than one earns. This is possible as long as one has savings to run down, or by running up debts payable in the future. However, a day of reckoning inevitably occurs. The MIT scientists ran a number of computer generated scenarios of the future including a “business as usual” projection, called the “standard run” which hit a global crisis in 2030.

It is now over 40 years since the original Limits to Growth study was published so it is legitimate to compare what was predicted in 1972 against what actually happened. This has now been done twice by Graham Turner who works at the Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO). Turner did this with data for the rst 30 years and then for 40 years of data. His conclusion is as follows:

The Limits to Growth standard run scenario produced 40 years ago continues to align well with historical data that has been updated in this paper following a 30-year comparison by the author. The scenario results in collapse of the global economy and environment and subsequently, the population. Although the modelled fall in population occurs after about 2030 – with death rates reversing contemporary trends and rising from 2020 onward – the general onset of collapse first appears at about 2015 when per capita industrial output begins a sharp decline. (Turner, 2012)

So what brings about the collapse? In the Limits to Growth model there are essentially two kinds of limiting restraints. On the one hand, limitations on resource inputs (materials and energy). On the other hand, waste/pollution restraints which degrade the ecological system and human society (particularly climate change).

Turner finds that, so far it, is the former rather than the latter that is the more important. What happens is that, as resources like fossil fuels deplete, they become more expensive to extract. More industrial output has to be set aside for the extraction process and less industrial output is available for other purposes.

With signficant capital subsequently going into resource extraction, there is insufficient available to fully replace degrading capital within the industrial sector itself. Consequently, despite heightened industrial activity attempting to satisfy multiple demands from all sectors and the population, actual industrial output per capita begins to fall precipitously, from about 2015, while pollution from the industrial activity continues to grow. The reduction of inputs produced per capita. Similarly, services (e.g., health and education) are not maintained due to insufficient capital and inputs.

Diminishing per capita supply of services and food cause a rise in the death rate from about 2020 (and somewhat lower rise in the birth rate, due to reduced birth control options). The global population therefore falls, at about half a billion per decade, starting at about 2030. Following the collapse, the output of the World3 model for the standard run (figure 1 to figure 3) shows that average living standards for the aggregate population (material wealth, food and services per capita) resemble those of the early 20th century. (Turner, 2012, p. 121)

 

Energy Return on Energy Invested

A similar analysis has been made by Hall and Klitgaard. They argue that to run a modern society it is necessary that the energy return on energy invested must be at least 15 to 1. To understand why this should be so consider the following diagram from a lecture by Hall. (Hall, 2012)

eroei

The diagram illustrates the idea of the energy return on energy invested. For every 100 Mega Joules of energy tapped in an oil flow from a well, 10 MJ are needed to tap the well, leaving 90 MJ. A narrow measure of energy returned on energy invested at the wellhead in this example would therefore be 100 to 10 or 10 to 1.

However, to get a fuller picture we have to extend this kind of analysis. Of the net energy at the wellhead, 90 MJ, some energy has to be used to refine the oil and produce the by-products, leaving only 63 MJ.

Then, to transport the refined product to its point of use takes another 5 MJ leaving 58MJ. But of course, the infrastructure of roads and transport also requires energy for construction and maintenance before any of the refined oil can be used to power a vehicle to go from A to B. By this final stage there is only 20.5 MJ of the original 100MJ left.

We now have to take into account that depletion means that, at well heads around the world, the energy to produce energy is increasing. It takes energy to prospect for oil and gas and if the wells are smaller and more difficult to tap because, for example, they are out at sea under a huge amount of rock. Then it will take more energy to get the oil out in the first place.

So, instead of requiring 10MJ to produce the 100 MJ, let us imagine that it now takes 20 MJ. At the other end of the chain there would thus, only be 10.5MJ – a dramatic reduction in petroleum available to society.

The concept of Energy Return on Energy Invested is a ratio in physical quantities and it helps us to understand the flaw in neoclassical economic reasoning that draws on the idea of “the invisible hand” and the price mechanism. In simplistic economic thinking, markets should have no problems coping with depletion because a depleting resource will become more expensive. As its price rises, so the argument goes, the search for new sources of energy and substitutes will be incentivised while people and companies will adapt their purchases to rising prices. For example, if it is the price of energy that is rising then this will incentivise greater energy efficiency. Basta! Problem solved…

Except the problem is not solved… there are two flaws in the reasoning. Firstly, if the price of energy rises then so too does the cost of extracting energy – because energy is needed to extract energy. There will be gas and oil wells in favourable locations which are relatively cheap to tap, and the rising energy price will mean that the companies that own these wells will make a lot of money. This is what economists call “rent”. However, there will be some wells that are “marginal” because the underlying geology and location are not so favourable. If energy prices rise at these locations then rising energy prices will also put up the energy costs of production. Indeed, when the energy returned on energy invested falls as low as 1 to 1, the increase in the costs of energy inputs will cancel out any gains in revenues from higher priced energy outputs. As is clear when the EROI is less than one, energy extraction will not be profitable at any price.

Secondly, energy prices cannot in any case rise beyond a certain point without crashing the economy. The market for energy is not like the market for cans of baked beans. Energy is necessary for virtually every activity in the economy, for all production and all services. The price of energy is a big deal – energy prices going up and down have a similar significance to interest rates going up or down. There are “macro-economic” consequences for the level of activity in the economy. Thus, in the words of one analyst, Chris Skrebowski, there is a rise in the price of oil, gas and coal at which:

the cost of incremental supply exceeds the price economies can pay without destroying growth at a given point in time.(Skrebowski, 2011)

This kind of analysis has been further developed by Steven Kopits of the Douglas-Westwood consultancy. In a lecture to the Columbia University Center on Global Energy Policy in February of 2014, he explained how conventional “legacy” oil production peaked in 2005 and has not increased since. All the increase in oil production since that date has been from unconventional sources like the Alberta Tar sands, from shale oil or natural gas liquids that are a by-product of shale gas production. This is despite a massive increase in investment by the oil industry that has not yielded any increase in “conventional oil” production but has merely served to slow what would otherwise have been a faster decline.

More specifically, the total spend on upstream oil and gas exploration and production from 2005 to 2013 was $4 trillion. Of that amount, $3.5 trillion was spent on the “legacy” oil and gas system. This is a sum of money equal to the GDP of Germany. Despite all that investment in conventional oil production, it fell by 1 million barrels a day. By way of comparison, investment of $1.5 trillion between 1998 and 2005 yielded an increase in oil production of 8.6 million barrels a day.

Further to this, unfortunately for the oil industry, it has not been possible for oil prices to rise high enough to cover the increasing capital expenditure and operating costs. This is because high oil prices lead to recessionary conditions and slow or no growth in the economy. Because prices are not rising fast enough and costs are increasing, the costs of the independent oil majors are rising at 2 to 3% a year more than their revenues. Overall profitability is falling and some oil majors have had to borrow and sell assets to pay dividends. The next stage in this crisis has then been that investment projects are being cancelled – which suggests that oil production will soon begin to fall more rapidly.

The situation can be understood by reference to the nursery story of Goldilocks and the Three Bears. Goldilocks tries three kinds of porridge – some that is too hot, some that is too cold and some where the temperature is somewhere in the middle and therefore just right. The working assumption of mainstream economists is that there is an oil price that is not too high to undermine economic growth but also not too low so that the oil companies cannot cover their extraction costs – a price that is just right. The problem is that the Goldilocks situation no longer describes what is happening. Another story provides a better metaphor – that story is “Catch 22”. According to Kopits, the vast majority of the publically quoted oil majors require oil prices of over $100 a barrel to achieve positive cash flow and nearly a half need more than $120 a barrel.

But it is these oil prices that drag down the economies of the OECD economies. For several years, however, there have been some countries that have been able to afford the higher prices. The countries that have coped with the high energy prices best are the so called “emerging non OECD countries” and above all China. China has been bidding away an increasing part of the oil production and continuing to grow while higher energy prices have led to stagnation in the OECD economies. (Kopits, 2014)

Since the oil price is never “just right” it follows that it must oscillate between a price that is too high for macro-economic stability or too low to make it a paying proposition for high cost producers of oil (or gas) to invest in expanding production. In late 2014 we can see this drama at work. The faltering global economy has a lower demand for oil but OPEC, under the leadership of Saudi Arabia, have decided not to reduce oil production in order to keep oil prices from falling. On the contrary they want prices to fall. This is because they want to drive US shale oil and gas producers out of business.

The shale industry is described elsewhere in this book – suffice it here to refer to the claim of many commentators that the shale oil and gas boom in the United States is a bubble. A lot of money borrowed from Wall Street has been invested in the industry in anticipation of high profits but given the speed at which wells deplete it is doubtful whether many of the companies will be able to cover their debts. What has been possible so far has been largely because quantitative easing means capital for this industry has been made available with very low interest rates. There is a range of extraction production costs for different oil and gas wells and fields depending on the differing geology in different places. In some “sweet spots” the yield compared to cost is high but in a large number of cases the costs of production have been high and it is being said that it will be impossible to make money at the price to which oil has fallen ($65 in late 2014). This in turn could mean that companies funding their operations with junk bonds could find it difficult to service their debt. If interest rates rise the difficulty would become greater. Because the shale oil and gas sector has been so crucial to expansion in the USA then a large number of bankruptcies could have wider repercussions throughout the wider US and world economy.

 

Renewable Energy systems to the rescue?

Although it seems obvious that the depletion of fossil fuels can and should lead to the expansion of renewable energy systems like wind and solar power, we should beware of believing that renewable energy systems are a panacea that can rescue consumer society and its continued growth path. A very similar net energy analysis can, and ought to be done for the potential of renewable energy to match that already done for fossil fuels.

eroei-renewables

Before we get over-enthusiastic about the potential for renewable energy, we have to be aware of the need to subtract the energy costs particular to renewable energy systems from the gross energy that renewable energy systems generate. Not only must energy be used to manufacture and install the wind turbines, the solar panels and so on, but for a renewable based economy to be able to function, it must also devote energy to the creation of energy storage. This would allow for the fact that, when the wind and the sun are generating energy, is not necessarily the time when it is wanted.

Furthermore, the places where, for example, solar and wind potential are at this best – offshore for wind or in deserts without dust storms near the equator for solar – are usually a long distance from centres of use. Once again, a great deal of energy, materials and money must be spent getting the energy from where it is generated to where it will be used. For example, the “Energie Wende” (Energy Transformation) in Germany is involving huge effort, financial and energy costs, creating a transmission corridor to carry electricity from North Sea wind turbines down to Bavaria where the demand is greatest. Similarly, plans to develop concentrated solar power in North Africa for use in northern Europe which, if they ever come to anything, will require major investments in energy transmission. A further issue, connected to the requirement for energy storage, is the need for energy carriers which are not based on electricity. As before, conversions to put a current energy flux into a stored form, involve an energy cost.

Just as with fossil fuels, sources of renewable energy are of variable yield depending on local conditions: offshore wind is better than onshore for wind speed and wind reliability; there is more solar energy nearer the equator; some areas have less cloud cover; wave energy on the Atlantic coasts of the UK are much better than on other coastlines like those of the Irish Sea or North Sea. If we make a Ricardian assumption that best net yielding resources are developed first, then subsequent yields will be progressively inferior. In more conventional jargon – just as there are diminishing returns for fossil energy as fossil energy resources deplete, so there will eventually be diminishing returns for renewable energy systems. No doubt new technologies will partly buck this trend but the trend is there nonetheless. It is for reasons such as these that some energy experts are sceptical about the global potential of renewable energy to meet the energy demand of a growing economy. For example, two Australian academics at Monash University argue that world energy demand would grow to 1,000 EJ (EJ = 10 18 J) or more by 2050 if growth continued on the course of recent decades. Their analysis then looks at each renewable energy resource in turn, bearing in mind the energy costs of developing wind, solar, hydropower, biomass etc., taking into account diminishing returns, and bearing in mind too that climate change may limit the potential of renewable energy. (For example, river flow rates may change affecting hydropower). Their conclusion: “We nd that when the energy costs of energy are considered, it is unlikely that renewable energy can provide anywhere near a 1000 EJ by 2050.” (Moriarty & Honnery, 2012)

Now let’s put these insights back into a bigger picture of the future of the economy. In a presentation to the All Party Parliamentary Group on Peak Oil and Gas, Charles Hall showed a number of diagrams to express the consequences of depletion and rising energy costs of energy. I have taken just two of these diagrams here – comparing 1970 with what might be the case in 2030. (Hall C. , 2012) What they show is how the economy produces different sorts of stuff. Some of the production is consumer goods, either staples (essentials) or discretionary (luxury) goods. The rest of production is devoted to goods that are used in production i.e. investment goods in the form of machinery, equipment, buildings, roads, infrastracture and their maintenance. Some of these investment goods must take the form of energy acquisition equipment. As a society runs up against energy depletion and other problems, more and more production must go into energy acquisition, infrastructure and maintenance. Less and less is available for consumption, and particularly for discretionary consumption.

hall

Whether the economy would evolve in this way can be questioned. As we have seen, the increasing needs of the oil and gas sector implies a transfer of resources from elsewhere through rising prices. However, the rest of the economy cannot actually pay this extra without crashing. That is what the above diagrams show – a transfer of resources from discretionary consumption to investment in energy infrastructure. But such a transfer would be crushing for the other sectors and their decline would likely drag down the whole economy.

Over the last few years, central banks have had a policy of quantitative easing to try to keep interest rates low. The economy cannot pay high energy prices AND high interest rates so, in effect, the policy has been to try to bring down interest rates as low as possible to counter the stagnation. However, this has not really created production growth, it has instead created a succession of asset price bubbles. The underlying trend continues to be one of stagnation, decline and crisis and it will get a lot worse when oil production starts to fall more rapidly as a result of investment cut backs. The severity of the recessions may be variable in different countries because competitive strength in this model goes to those countries where energy is used most efficiently and which can afford to pay somewhat higher prices for energy. Such countries are likely to do better but will not escape the general decline if they stay wedded to the conventional growth model. Whatever the variability, this is still a dead end and, at some point, people will see that entirely different ways of thinking about economy and ecology are needed – unless they get drawn into conflicts and wars over energy by psychopathic policy idiots. There is no way out of the Catch 22 within the growth economy model. That’s why degrowth is needed.

Further ideas can be extrapolated from Hall’s way of presenting the end of the road for the growth economy. The only real option as a source for extra resources to be ploughed into changing the energy sector is from what Hall calls “discretionary consumption” aka luxury consumption. It would not be possible to take from “staples” without undermining the ability of ordinary people to survive day to day. Implicit here is a social justice agenda for the post growth – post carbon economy. Transferring resources out of the luxury consumption of the rich is a necessary part of the process of finding the wherewithal for energy conservation work and for developing renewable energy resources. These will be expensive and the resources cannot come from anywhere else than out of the consumption of the rich. It should be remembered too that the problems of depletion do not just apply to fossil energy extraction coal, oil and gas) but apply across all forms of mineral extraction. All minerals are depleted by use and that means the grade or ore declines over time. Projecting the consequences into the future ought to frighten the growth enthusiasts. To take in how industrial production can hit a brick wall of steeply rising costs, consider the following graph which shows the declining quality of ore grades mined in Australia.

mining-australia

As ores deplete there is a deterioration of ore grades. That means that more rock has to be shifted and processed to refine and extract the desired raw material, requiring more energy and leaving more wastes. This is occurring in parallel to the depletion in energy sources which means that more energy has to be used to extract a given quantity of energy and therefore, in turn, to extract from a given quantity of ore. Thus, the energy requirements to extract energy are rising at the very same time as the amount of energy required to extract given quantities of minerals are rising. More energy is needed just at the time that energy is itself becoming more expensive.

Now, on top of that, add to the picture the growing demand for minerals and materials if the economy is to grow.

At least there has been a recognition and acknowledgement in recent years that environmental problems exist. The problem is now somewhat different – the problem is the incredibly naive faith that markets and technology can solve all problems and keep on going. The main criticism of the limits to growth study was the claim that problems would be anticipated in forward markets and would then be made the subject of high tech innovation. In the next chapter, the destructive effects of these innovations are examined in more depth.

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EROI explained and defended by Charles Hall, Pedro Prieto, and others

29 05 2017

Yes, another post on ERoEI……  why do I bang on about this all the time…?  Because it is the defining issue of our time, the issue that will precipitate Limits to Growth to the forefront, and eventually collapse civilisation as we know it.

There are two ways to collapse civilisation:
1) don’t end the burning of oil
2) end burning oil

And if that wasn’t enough, read this from srsroccoreport.com 

While the U.S. oil and gas industry struggles to stay alive as it produces energy at low prices, there’s another huge problem just waiting around the corner.  Yes, it’s true… the worst is yet to come for an industry that was supposed to make the United States, energy independent.  So, grab your popcorn and watch as the U.S. oil and gas industry gets ready to hit the GREAT ENERGY DEBT WALL.

So, what is this “Debt Wall?”  It’s the ever-increasing amount of debt that the U.S. oil and gas industry will need to pay each year.  Unfortunately, many misguided Americans thought these energy companies were making money hand over fist when the price of oil was above $100 from 2011 to the middle of 2014.  They weren’t.  Instead, they racked up a great deal of debt as they spent more money drilling for oil than the cash they received from operations.

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alice_friedemannAlice Friedemann   www.energyskeptic.com  author of “When Trucks Stop Running: Energy and the Future of Transportation”, 2015, Springer and “Crunch! Whole Grain Artisan Chips and Crackers”. Podcasts: Practical Prepping, KunstlerCast 253, KunstlerCast278, Peak Prosperity , XX2 report ]

Questions about EROI at researchgate.net 2015-2017

Khalid Abdulla, University of Melbourne asks:  Why is quality of life limited by EROI with renewable Energy? There are many articles explaining that the Energy Return on (Energy) Invested (EROI, or EROEI) of the sources of energy which a society uses sets an upper limit on the quality of life (or complexity of a society) which can be enjoyed (for example this one).  I understand the arguments made, however I fail to understand why any energy extraction process which has an external EROI greater than 1.0 cannot be “stacked” to enable greater effective EROI.  For example if EROI for solar PV is 3.0, surely one can get an effective EROI of 9.0 by feeding all output energy produced from one solar project as the input energy of a second? There is obviously an initial energy investment required, but provided the EROI figure includes all installation and decommissioning energy requirements I don’t understand why this wouldn’t work. Also I realise there are various material constraints which would come into play; but why does this not work from an energy point of view?

Charles A. S. Hall replies:  As the person who came up with the term  EROI in the 1970scharles-hall (but not the concept: that belongs to Leslie White, Fred Cotrell, Nicolas Georgescu Roegan and Howard Odum) let me add my two cents to the existing mostly good posts.  The problem with the “stacked” idea is that if you do that you do not deliver energy to society with the first (or second or third) investment — it all has to go to the “food chain” with only the final delivering energy to society.  So stack two EROI 2:1 technologies and you get 4:2, or the same ratio when you are done.

The second problem is that you do not need just 1.1:1 EROI to operate society.  We (Hall, Balogh and Murphy 2009) studied how much oil would need to be extracted to drive a truck including the energy to USE the energy.  So we added in the energy to get, refine and deliver the oil (about 10% at each step) and then the energy to build and maintain the roads, bridges, vehicles and so on.  We found you needed to extract 3 liters at the well head to use 1 liter in the gas tank to drive the truck, i.e. an EROI of 3:1 was needed.

But even this did not include the energy to put something in the truck (say grow some grain)  and also, although we had accounted for the energy for the depreciation of the truck and roads,  but not the depreciation of the truck driver, mechanic, street mender, farmer etc.: i.e. to pay for domestic needs, schooling, health care etc. of their replacement.    Pretty soon it looked like we needed an EROI of at least 10:1 to take care of the minimum requirements of society, and maybe 15:1 (numbers are very approximate) for a modern civilization. You can see that plus implications in Lambert 2014.

I think this and incipient “peak oil” (Hallock et al.)  is behind what is causing most Western economies to slow or stop  their energy and economic growth.   Low EROI means more expensive oil (etc) and lower net energy means growth is harder as there is less left over after necessary “maintenance metabolism”. This is explored in more depth in Hall and Klitgaard book  “Energy and the wealth of Nations” (Springer).

Khalid Abdulla asks: I’m still struggling a little bit with gaining an intuition of why it is not possible to stack/compound EROI. If I understand your response correctly part of the problem is that while society is waiting around for energy from one project to be fed into a second project (etc.) society needs to continue to operate (otherwise it’d all be a bit pointless!) and this has a high energy overhead.  I understand that with oil it is possible to achieve higher external EROI by using some of the oil as the main source of energy for extraction/processing. Obviously this means less oil is delivered to the outside world, but it is delivered at a higher EROI which is more useful. I don’t understand why a similar gearing is not possible with renewables.  Is it something to do with the timing of the input energy required VS the timing of the energy which the project will deliver over its life?

Charles A. S. Hall replies: Indeed if you update the QUALITY of the energy you can come out “ahead”.  My PhD adviser Howard Odum wrote a lot about that, and I am deeply engaged in a discussion about the general meaning of Maximum Power (a related concept) with several others.  So you can willingly turn more coal into less electricity because the product is more valuable.   Probably pretty soon (if we are not already) we will be using coal to make electricity to pump out ever more difficult oil wells….

I have also been thinking about EROI a lot lately and about what should the boundaries of analysis be.  One of my analyses is available in the book “Spain’s PV revolution: EROI and.. available from Springer or Amazon.

To me the issue of boundaries remains critical. I think it is proper to have very wide boundaries. Let’s say we run an economy just on a big PV plant. If the EROI is 8:1 (which you might get, or higher, from examining just the modules) then it seems like you could make your society work. But let’s look closer. If you add in security systems, roads, and financial services and the EROI drops to 3:1 then it seems more problematic. But if you add in labor (i.e. the energy it takes to make the food, housing etc that labor buys with its salaries, calculated from national mean energy intensities times salaries for all necessary workers) it might drop to 1:1. Now what this means is that the energy from the PV system will support all the purchases of the workers that are building/maintaining the PV system, let’s say 10% will be taken care of, BUT THERE WILL BE NO PRODUCTION OF GOODS AND SERVICES for the rest of the population. To me this is why we should include salaries of the entire energy delivery system (although I do not because it remains so controversial). I think this concept, and the flat oil production in most of the world, is why we need to think about ALL the resources necessary to deliver energy from a project/ technology/nation.”

Khalid Abdulla: My main interest is whether the relatively low EROI of renewable energy sources fundamentally limits the complexity of a society that can be fueled by them.

Charles A. S. Hall replies: Perhaps the easiest way to think about this is historical: certainly we had lots of sunshine and clever minds in the past.  But we did not have a society with many affluent people until the industrial revolution, based on millions of years of accumulated net energy from sunshine. An affluent king, living a life of affluence less than most people in industrial societies now, was supported by the labor of thousands or millions of serfs harvesting solar energy.  The way to get rich was to exploit the stored solar energy of other societies through war (see Plutarch or Tainter’s the collapse of complex societies).

But most renewable energy (good hydropower is an exception) are low EROI or else seriously constrained by intermittency. Look at all the stuff required to support “free” solar energy. We (and Palmer and Weisbach independently) found EROIs of about 3:1 at best when all costs are accounted for.

The lower the EROI the larger the investment needed for the next generation: that is why fossil fuels with EROIs of 30 or 50 to one have led to such wealth: the other 29 or 49 have been deliverable to society to do economic work or that can be invested in getting more fossil fuels.  If the EROI is 2:1 obviously half has to go into the next generation for the growth and much less is delivered to society.   One can speculate or fantasize about what one can do with some future technology but having been in the energy business for 50 years I have seen many come and go.  Meanwhile we still get about 75-80% of our energy from fossil fuels (with their attendant high EROI).

Obviously we could have some kind of culture with labor intensive, low energy input systems if people were willing to take a large drop in their life style.  I fear the problem might be that people would rather go to war than accept a decline in life style.

Lee’s assessment of the traditional  Kung hunter gatherer life style implies an EROI of 10:1 and lots of leisure (except during droughts–which is the bottleneck).  Past agricultural societies obviously had a positive EROI based on human labor input — otherwise they would have gone extinct.  But it required something like a hectare per person.  According to Jared Diamond cultures became more complex with agriculture vs hunter gatherer.

The best assessment I have about EROI and quality of life possible is in:  Lambert, Jessica, Charles A.S. Hall, Stephen Balogh, Ajay Gupta, Michelle Arnold 2014 Energy, EROI and quality of life. Energy Policy Volume 64:153-167 http://authors.elsevier.com/sd/article/S0301421513006447 — It is open access.  Also our book:  Hall and Klitgaard, Energy and the wealth of nations.   Springer

At the moment the EROI of contemporary agriculture is 2:1 at the farm gate but much less, perhaps one returned for 5 invested  by the time the food is processed, distributed and prepared (Hamilton 2013).

As you can see from these studies to get numbers with any kind of reliability requires a great deal of work.

Sourabh Jain asks: Would it be possible to meet the EROI goal of, say for example 10:1, in order to maintain our current life style by mixing wind, solar and hydro? Can we have an energy system various renewable energy sources of different EROI to give a net EROI of 10:1?

Charles A. S. Hall replies:  Good question.  First of all I am not sure that we can maintain our current life style on an EROI of 10:1, but let’s assume we can (Hall 2014, Lambert 2014).  We would need liquid fuels of course for tractors , airplanes and ships — I cannot quite envision running those machines on electricity.

The problem with wind is that it tends to blow only 30% of the time, so we would need massive storage.  To the degree that we can meet intermittency with hydro that is good, although it is tough on the fish and insects below the dam.  The energy cost of that would be huge, prohibitive with respect to batteries, huge with respect to pumped storage, and what happens when the wind does not blow for two weeks, as is often the case?

Solar PV may or may not have an EROI of 10:1 (I assume you know of the three studies that came up with about 3:1: Prieto and Hall, Graham Palmer, Weisbach — but there are others higher and certainly the price and hence presumed energy cost is coming down –but you should also know that many structures are lasting only 12, not 25 years) — — this needs to be sorted out ).  But again the storage issue will be important.   (Palmer’s rooftop study included storage).

These are all important issues.  So I would say the answer seems to be no, although it might work well for let’s say half of our energy use.   As time goes on that percentage might increase (or decrease).

Jethro Betcke writes: Charles Hall: You make some statements that are somewhat inaccurate and could easily mislead the less well informed: Wind turbines produce electricity during 70 to 90% of the time. You seems to have confused capacity factor with relative time of operation.  Using a single number for the capacity factor is also not so accurate. Depending on the location and design choices the capacity factor can vary from 20% to over 50%.  With the lifetime of PV systems you seem to have confused the inverter with the system as a whole. The practice has shown that PV modules last much longer than the 25 years guaranteed by the manufacturer. In Oldenburg we have a system from 1976 that is still producing electricity and shows little degradation loss [1]. Inverters are the weak point of the system and sometimes need to be replaced. Of course, this would need to be considered in an EROEI calculation. But this is something different than what you state. [1] http://www.presse.uni-oldenburg.de/download/einblicke/54/parisi-heinemann-juergens-knecht.pdf

Charles A. S. Hall replies: I resent your statement that I am misleading anyone.   I write as clearly, accurately and honestly as I can, almost entirely in peer reviewed publications, and always have. I include sensitivity analysis while acknowledging legitimate uncertainty (for example p. 115 in Prieto and Hall).  Some people do not like my conclusions. But no one has shown with explicit analysis that Prieto and Hall is in any important way incorrect.  At least three other peer reviewed papers) (Palmer 2013, 2014; Weisbach et al. 2012 and Ferroni and Hopkirk (2016) have come up with similar conclusions on solar PV.  I am working on the legitimate differences in technique with legitimate and credible solar analysts with whom I have some differences , e.g. Marco Raugei.  All of this will be detailed in a new book from Springer in January on EROI.

First I would like to say that the bountiful energy blog post is embarrassingly poor science and totally unacceptable. As one point the author does not back his (often erroneous) statements with references. The importance of peer review is obvious from this non peer-reviewed post.

Second I do not understand your statement about wind energy producing electricity 70-90 percent of the time.  In England, for example, it is less than 30 percent (Jefferson 2015).

Third your statement on the operational lifetime of actual operational PV systems is incorrect. Of course one can find PV systems still generating electricity after 30 years.  But actual operational systems requiring serious maintenance (and for which we do not yet have enough data) often do not last more than 18-20 years, For example Spain’s “Flagship ” PV plant (which was especially well maintained) is having all modules replaced and treated as “electronic trash” after 20 years : http://renewables.seenews.com/news/spains-ingeteam-replaces-modules-at-europes-oldest-pv-plant-538875    Ferroni and Hopkirk found an 18 year lifespan in Switzerland.

Pedro Prieto replies: The production of electricity of wind turbines the 70-90% of time is a very inaccurate quote. Every wind turbine has a nominal capacity in MW. The important factor is not how many hours they move the blades at any working regime, but how many EQUIVALENT peak hours they work at the end of the year. That is, to know how much real energy they generate within one year. This is what the industry uses as a general and accurate measurement and it is the load factor or capacity factor.

Of course, this factor may change from the location or the design choices, but there is an incontrovertible figure: when we take the total world installed wind power in MW (435 Gw as of 2015) from January 2004 up to December 2015 and the total energy generated in Twh (841 Twh as of 2015) in the same period and calculate the averaged capacity factor, the resulting figure slightly varies around 15% AT WORLD LEVEL. This is REAL LIFE, much more than your unsupported theoretical figures of 20 to over 50% capacity factor in privileged wind fields for privileged wind turbines.

Interesting enough, some countries like the US, United Kingdom or Spain have capacity factors reaching 20% in the last years, but the world total installed capacity has not really improved so much in the last ten years, despite of theoretically much more efficient wind turbines (i.e. multipole with permanent magnets), very likely for the reasons that good wind fields in some countries were already used up. Other countries like China, India or France show, on the contrary very poor capacity factors even in 2015.

 

With respect to the lifetime of the PV systems, nor Charles Hall neither myself have confused the inverter lifetime with the solar PV system as a whole. The practice has not shown that modules have lasted more than 25 years in general over the world installed base. The fact that one single system is still working after more than 30 years of operation, if it was carefully manufactured with high quality materials, and was well cared, cleaned and free from environmental pollutants, like several modules we have also in Spain, does not mean AT ALL that the massive deployments (about 250 GW as of 2015) are going to last over 25 years.

I have to clarify also a common mistake: almost all main world manufacturers guarantee a maximum of 25 years (NOT 30) to the modules, but this is the “power” guarantee. This means that they “guarantee” (assuming they will be still alive as companies in 25 years from the sales period, something which is rather difficult for many of the manufacturers that went out of business in shorter periods of time than the guarantee of their modules. Of course, this guarantee is given with the subsequent module degradation specs over time, which in many cases has been proved be higher than specified.

But not only that. Most of the module manufacturers have a second guarantee: the “material’s guarantee”. And this is offered for between 5 and 10 years. This is the one by which the manufacturer guarantees the module replacement if it fails. Beyond that date, if the module fails, the buyer has to buy a new one (if still being manufactured, with the same specs power and size), because the second guarantee SUPERSEDES the first one.

Last but not least, there is already quite a large experience in Europe (Germany, France, Switzerland, Spain, Italy, etc.) of the number of faulty modules that have been decommissioned in the last years (i.e. period 2010-2015) as for instance, accounted by PV-Cycle, a company specialized in decommission and recycling modules in Europe. As the installed base is well known in volumes per year, it is relatively easy to calculate, in a very conservative (optimistic) mode the percentage over the total that failed and the number of years that lasted in this period and the average years for that sample that died before the theoretical 25-30 years lifetime and make the proportion on the total installed base.

The study conducted by Ferroni and Hopkirk gives an approximate lifetime for the installed base of lower than 20 years. And this is Europe, where the maintenance is supposed to be much better made than in the rest of the developing world. And the figures of failed modules given by PV-Cycle did not include the many potential plants that did not deliver their failed modules to this company for recycling

What it seems impossible for some academic people is to recognize that perhaps the “standards” they adhered to (namely IEA PVPS Task 12 in this case) and through which they published a big number of papers, should be revisited, because they lacked some essential measurements that could help to understand why renewables are not replacing fossils at the required speed, despite having claimed for years that they reached grid parity or that their Levelized Cost of Electricity (LCOE) is cheaper than coal, nuclear or gas. 

I am afraid that peer reviewed authors are not immune to having preconceived ideas even more difficult to eradicate. Excessive pride, lack of humility, considerable distance between the academy (i.e. imagined solar production levels versus real data from actual solar PV plants and lack of a systemic vision due to an excess of specialization are the main hurdles. Of course in my humble opinion.

References

  • Hall, C.A.S., Balogh, S., Murphy, D.J.R. 2009. What is the Minimum EROI that a Sustainable Society Must Have? Energies, 2: 25-47.
  • Hall, Charles  A.S., Jessica G.Lambert, Stephen B. Balogh. 2014.  EROI of different fuels  and the implications for society Energy Policy Energy Policy. Energy Policy, Vol 64 141-52
  • Hallock Jr., John L., Wei Wu, Charles A.S. Hall, Michael Jefferson. 2014. Forecasting the limits to the availability and diversity of global conventional oil supply: Validation. Energy 64: 130-153. (here)
  • Hamilton A , Balogh SB, Maxwell A, Hall CAS. 2013. Efficiency of edible agriculture in Canada and the U.S. over the past 3 and 4 decades. Energies 6:1764-1793.
  • Lambert, Jessica, Charles A.S. Hall, et al.  Energy, EROI and quality of life.  Energy Policy




Crisis? Which crisis are we actually talking about…?

16 03 2017

Since writing about the perceived ‘crisis’ in Australia’s gas supplies, the amount of bullshit coming out of the media, not least social media, is bewildering…… Some of it is downright amusing, and most of it would be really funny, were it not so tragic.

There is so much disinformation out there, it’s hard to even know where to start. The Lock the Gate Alliance fell right into the fossil fuel industry trap with this ridiculous youtube video….

The last thing you need to do if you want to stop the fracking fiasco is to tell everyone there is a shortage of gas… because how do you deal with a shortage? You frack for more..! Especially when there is no shortage and Australia is swimming in gas.

There are no winners in this. The gas companies are forced to sell gas cheaply to Japan and South Korea, neither of which have any energy resources of their own. Australia is the second largest gas exporter after Qatar, and will overtake it within a few years. We export to the nations with the highest demand too. Japan alone, which imports 34% of the world’s gas, so desperate are they for the stuff, could take all our gas, were it not for the fact other arrangements are already in place. Ironically, we sell our gas there so cheaply, it beggars belief. Worse…Qatar raises three times as much in royalties as Australia for selling  the same amount of gas. You can blame John Howard for this….. he didn’t believe in peak energy all those years ago when the contracts were signed, and literally forced the hands of the companies to agree to stupid prices which they are now unable to get out of. Unless the government steps in again.

It borders on the ridiculous that Japanese gas customers buy Australian gas more cheaply than Australians, especially as the gas is drilled in the Bass Strait, piped to Queensland, turned into liquid and shipped 6,700 kilometres to Japan … but the Japanese still pay less than Victorians. And I’m reliably informed that piping the gas from Victoria to Queensland costs ten times as much as moving oil…… imagine the ERoEI of doing this..?

Notwithstanding Alan Kohler announcing on ABC news the other night that the era of cheap energy was over (yes, he actually said this… nearly fell of my chair…), energy is not dear. Remember this video? If people were paid for their labour energy at the same rate as fossil fuels, they would be paid SIX CENTS AN HOUR…… that sounds so dreadfully expensive….

While AGL was earnestly talking up gas shortages in 2014, BHP Petroleum chief Mike Yeager told journalists:

We want to make sure that the market knows that the Bass Strait field still has a large amount of gas that’s undeveloped … We have a lot of gas in eastern Australia that’s available. It’s more important to let the citizens of Victoria and New South Wales, and to some degree, you know, even Queensland … there’s plenty of gas to supply those provinces for – you know, indefinitely.

AGL later quietly issued a release to the ASX conceding it had plenty of gas supply. So there you go, it has nothing to do with those greenies locking their gates up after all….

Even the Guardian is at it…..:

Gas prices have doubled and in some cases tripled because gas suppliers are now capable of exporting our gas to high paying customers in Asia.

Like whom exactly…?

And…

Complicating matters is that gas suppliers rushed in to sign export contracts and then subsequently found they didn’t have enough gas to fulfill them. This has left the Australian domestic market very short of gas.

For pity’s sake, where do these people get their information from…?

Australia swimming in gas

Now, keeping all our gas to ourselves gets complicated here, and I hope I get this right, as this whole issue is really starting to make my head spin. It turns out, much of the money invested in the gas export system was actually borrowed from Japan. Ever heard of the yen carry trade? It is when investors borrow yen at a low interest rate, then exchange it for U.S. dollars or any other currency in a country that pays a higher interest rate on its bonds. Like Australia does. So if we decide to tell the Japanese to get stuffed, their banks may well want their money back, at which stage the brown stuff hits the fan…… Does our merchant banker PM know this I wonder……?

Luckily for us, last September, Japan’s energy minister informed the world that imports of LNG would continue falling. They fell by 4.7% in 2015 and another 2% in 2016 amid a rising commitment to renewables and the rebooting of nuclear reactors that were shut down after the Fukushima disaster……

Meanwhile, they are all panicking here in Australia trying to keep our ‘energy security’ intact by building batteries and a new gas powered station in SA, and pumped hydro energy storage in NSW at a cost of some three billion dollars. All made with fossil fuels of course, because there’s nothing like them… Most of the benefits will be swamped by population growth within less than a decade……

Because dear reader, the crisis is not a gas crisis, it’s a growth crisis, and it’s all coming to a head. But you already knew that, and we all know nobody will do a thing about it.





Some reflections on the Twilight of the Oil Age (part III)

21 07 2016

Guest post by Louis Arnoux, republished from Ugo Bardi’s excellent blog

Part I

Part 3 – Standing slightly past the edge of the cliff

The Tooth Fairy Syndrome that I discussed in Part 2 is, in my view, the fundamental reason why those holding onto BAU will grab every piece of information that can possibly, superficially, back up their ideology and twist it to suit their viewa, generating much confusion in the process.  It is also probably fair to say that the advocates of various versions of“energy transition” are not immune to this kind of syndrome when they remain oblivious to the issues explored in Parts 1 and 2.  Is it possible to go beyond such confusion?

The need to move away from ideology

The impact of the Tooth Fairy Syndrome is all the more felt in the main media and among politicians – with the end result that so many lay people (and many experts) end up highly confused about what to think and do about energy matters.  Notably, we often encounter articles advocating, even sensationalising, various energy transition technologies or instead seeking to rubbish them by highlighting what they present as problematic issues without any depth of analysis.  For example, a 2013 article from the Daily Mail was highlighted in recent discussions among energy experts as a case in point.[1]  The UK is indeed installing large numbers of subsidized, costly diesel generators to be used as back-up at times of low electricity supplies from wind turbines. This article presented this policy as very problematic but failed to set things in perspective about what such issues say about the challenges of any energy transition.

In New Zealand, where I lived close to half of my life before a return to my dear Provence (De reditu suo mode, as a wink to an earlier post by Ugo) about 73% of electricity is deemed renewable (with hydro 60%, geothermal 10%, wind 3%, PVs about 0.1%); the balance being generated from gas and coal.  There is a policy to achieve 90% renewables by 2025. Now, with that mix we have had for many years something like what the UK is building, with a number of distributed generators for emergency back-up without this being a major issue.  The main differences I see with the UK are that (1) in NZ we have only about 5M people living in an area about half that of France (i.e. the chief issue is a matter of renewable production per head of population) and (2) the system is mostly hydro, hence embodying a large amount of energy storage, that Kiwi “sparkies” have learned to manage very well.  It ensues that a few diesel or gas generators are not a big deal there.  By contrast, the UK in my view faces a very big challenge to go “green”.

The above example illustrates the need to extricate ourselves from ideology and look carefully into systems specifics when considering such matters as the potential of various technologies, like wind turbine, PVs, EVs, and so on, as well as capacity factors and EROI levels in the context of going 100% renewable.  All too often, vital issues keep being sidestepped by both BAU and non-BAU parties; while ignoring them often leads to erroneous “solutions” and even dangerous ones.  So as a conclusion of this three-part series focused on “enquiring into the appropriateness of the question”, here are some of the fundamental issues that I see in front of us (the list is not exhaustive):

“Apocalypse now”

At least since the early 1970s and the Meadows’ work, we have known that the globalised industrial world (GIW) is on a self-destructive path, aka BAU (Business as usual). We now know that we are living through the tail end of this process, the end of the Oil Age, precipitating what I have called the Oil Fizzle Dragon-King, Seneca style, that is, after a slow, relatively smooth climb (aka “economic growth”) we are at the beginning of an abrupt fall down a thermodynamic cliff.

The chief issue is whole system change. This means thinking in whole systems terms where the thermodynamics of complex systems operating far from equilibrium is the key.  In terms of epistemology and methods, this requires what in anthropology is called the “hermeneutic circle”: moving repeatedly from the particulars, the details, to the whole system, improving our understanding of the whole and from this going back to the particulars, improving our understanding of them, going back to considering the whole, and so on.  Whole system replacement, i.e. going 100% renewable, requires a huge energy embodiment, a kind of “primitive accumulation” (as a wink to Marx) that presently, under the prevailing paradigm and technology set, is not feasible.  Having the “Energy Hand” in mind (Figure 5), where does this required energy may come from in a context of sharp decline of net energy from oil and Red Queen effect, and concerning renewable, inverse Red Queen/cannibalisation effects?  As another example of the importance of whole system thinking, Axel Kleidon has raised the question of the viability of very large-scale wind versus direct solar.[2]

Solely considering the performances and cost of this or that alternative energy technology won’t suffice.  Short of addressing the complexities of whole system replacement, the situation we are in is some kind of “Apocalypse now”.  The chief challenge I see is thus how to shift safely, with minimal loss of life (substantial loss of life there will be; this has become unavoidable), from fossil-BAU (and thus accessorily nuclear) to 100% sustainable, which means essentially, in one form or another, a direct solar-based society.

We currently have some 17 TW of power installed globally (mostly fossil with some nuclear), i.e. about 2.3kW/head, but with some 4 billion people who at best are grossly energy stressed, many who have no access to electricity at all and only limited transport, in a context of an efficiency of global energy systems in the order of 12%.[3]  To address the Oil Fizzle Dragon-King and the Perfect Storm that it is in the process of whipping up, I consider that we need to move to 4kW/head for the whole population (assuming it levels off at some 8 billion people instead of the currently expected 11 billions), plus some 10TW additional to address climate change and other ecological energy related issues, hence about 50TW, 100% direct solar based, for the whole spectrum of energy uses including transport; preferably over 20 years.  Standing where we now are, slightly past the edge of the thermodynamic cliff, this is my understanding of what’s required.

In other words, going “green” and surviving it (i.e. avoiding the inverse Red Queen effect) means increasing our Energy Hand from 17 TW to 50 TW (as a rough order of magnitude), with efficiencies shifting from 12% to over 80%.

To elaborate this further, I stress it again, currently the 17 TW do not even suffice to cater for the whole 7.3 billion global population and by a wide margin.  Going “green” with the current “renewable” technology mix and related paradigm would mean devoting a substantial amount of those 17 TW to the “primitive accumulation” of the “green” system.  It should be clear that under this predicament something would have to give, i.e. some of us would get even more energy stressed, and die, or as the Chinese and Indians have been doing for a while we would use much more of remaining fossil resources but then this would accelerate global warming and many other nasties. Alternatively we may face up to changing paradigm so as to rapidly steer away from global EROIs below 10:1 and global energy efficiency around 12%.  This is the usual “can’t have one’s cake and eat it” situation writ large.

Put in an other way, when looking at whole societal system replacement one must look at the whole of what’s required to make the system work, including people and their own energy requirements – this is fundamentally a matter of system boundary definitions related to problem definition (in David Bhom’s sense).   We can illustrate this by considering the Kingdom of Saudi Arabia (KSA).  As a thought experiment, remove oil (the media have reported that KSA’s Crown Prince has seen the writing on some wall re the near end of the oil bonanza).  This brings the KSA population from some 27M down to some 2M, i.e. some 25M people are currently required to keep oil flowing at some 10M bbl/day (including numerous Filipino domestics, medics, lawyers, and so on) plus about three times that population overseas to supply what the 25M require to keep the oil flowing…

Globally, I estimate very roughly that some 1.5 billion people, directly related to oil production, processing distribution and transport matters did require oil at above $100/bbl for their livelihood (including the Filipino domestics).  I call them the Oil People. [4]  Most of them currently are unhappy and struggle; their “demand” for goods and services has dropped considerably since 2014.

So all in all, whole system replacement (on a “do or die” mode) requires considering whole production chain networks from mining the ores, through making the metals, cement, etc., to making the machines, to using them to produce the stuff we require to go 100% sustainable, as well as the energy requirements of not only the Oil People but the full compendium of the Energy People involved, both the “fossil” ones and the “green” ones; while meanwhile we need to keep existing fossil-based energy systems going as much as possible.  Very roughly the Energy People are probably in the order of 3 billion people (and it is not easy to convert a substantial proportion of the “fossil” ones to “green”, including their own related energy requirements – this too has a significant energy cost).  This is where Figure 2, with the interplay of Red Queen and the inverse Red Queen, comes in.

Figure 2

redqueen
In my view at this whole system level we do have a major problem.  Given the very short time window constraint, we can’t afford to get it wrong in terms of how to possibly getting out of there – we have hardly enough time to have one go at it.

Remaining time frame

Indeed, under the sway of the Tooth Fairy (see Part 2) and an increasingly asthmatic Red Queen, we no longer have 35 years, (say up to around 2050).  We have at best 10 years, not to debate and agonise but to actually do, with the next three years being key.  The thermodynamics on this, summarised in Part 1, is rock hard.  This timeframe, combined with the Oil Pearl Harbor challenge and the inverse Red Queen constraints, means in my view that none of the current“doings” renewable-wise can cut it.  In fact much of these stand to make matters worse – I refer here to current interactions between efforts at going green largely within the prevailing paradigm and die hard BAU efforts at keeping fossils going, as perhaps exemplified in the current UK policies discussed earlier.

Weak links

Notwithstanding its apparent power, the GIW is in fact extremely fragile.  It embodies a number of very weak links in its networks.  I have highlighted the oil issue, an issue that defines the overall time frame for dealing with “Apocalypse now”.  In addition to that and to climate change, there are a few other challenges that have been variously put forward by a range of researchers in recent years, such as fresh water availability, massive soil degradation, trace pollutants, degradation of life in oceans (about 99% of life is aquatic), staple food threats (e.g. black stem rust, wheat blast, ground level ozone, etc.), loss of biodiversity and 6th mass extinction, all the way to Joseph Tainter’s work concerning the links between energy flows, power (in TW), complexity and overshoot to collapse.[5]

These weak links are currently in the process of breaking or are about to break, the breaks forming a self-reinforcing avalanche (SOC) or Perfect Storm.  All have the same key timeframe of about 10 years as an order of magnitude for acting.  All require a fair “whack” of energy as a prerequisite to handling them (the “whack” being a flexible and elastic unit of something substantial that usually one does not have).

It’s all burnt up

carbonbudget

Figure 6 – Carbon all burnt

Recent research shows that sensitivity to climate forcing has been substantially underestimated, meaning that we must expect much more warming in the longer term than touted so far.[6]  This further exacerbates what we already knew, namely that there is no such thing as a “carbon budget” of fossils the GIW could still burn, and no way of staying below the highly political and misleading 2oC COP21 objective (Figure 6).[7]

The 350ppm CO2 equivalent advocated by Hansen et al. is a safe estimate – a boundary crossed in the late 1980s, some 28 years ago.  So the reality is that we can’t escape actually extracting CO2 from the atmosphere, somehow, if we want to avoid trying to survive in a few mosquito infested areas of the far north and south, while some 80% of the planet becomes non-habitable in the longer run.  Direct Air Capture of atmospheric CO2 (DAC) is something that also requires a fair “whack” of energy, hence the additional 10TW I consider is required to get out of trouble.

Cognitive failure

eroei

Figure 7 – EROI cognitive failure

The “Brexit” saga is perhaps the latest large-scale demonstration of cognitive failure in a very long series.  That is to say, the failure on the part of decision-making elites to make use of available knowledge, experience, and expertise to tackle effectively challenges within the timeframe required to do so.

Cognitive failure is probably most blatant, but largely remaining unseen, concerning energy, the Oil Fizzle DK and matters of energy returns on energy investments (EROI or EROEI).  What we can observe is a triple failure of BAU, but also of most current “green” alternatives (Figure 7): (1) the BAU development trajectory since the 1950s failed; (2) there has been a failure to take heed of over 40 years of warnings; and (3) there has been a failure to develop viable alternatives.

However, although I am critical of aspects of recent evaluations of the feasibility of going 100% renewable,[8] I do think it remains feasible with existing knowledge, no “blue sky” required, i.e. to reach in the order of 50TW 100% solar I outlined earlier, but I also think that a crash on the cliff side of the Seneca is no longer avoidable.  In other words I consider that it remains possible to partly retrieve the situation while the GIW crashes so long as enough people do realise that one can’t change paradigm on the down side as one may do on the upside of a Seneca, which presently our elites, in full blown cognitive failure mode, don’t understand.

To illustrate this matter further and highlight why I consider that production EROIs well above 30:1 are necessary to get us out of trouble consider Figure 8.

freelunch

Figure 8 – The necessity of very high EROIs

This is expanded from similar attempts by Jessica Lambert et al., to perhaps highlights what sliding down the thermodynamic cliff entails.  Charles Hall has shown that a production EROI of 10:1 corresponds roughly to an end-user EROI of 3.3:1 and is the bare minimum for an industrial society to function.[9]  In sociological terms, for 10:1 think of North Korea.  As shown on Figure 7, currently I know of no alternative, either unconventional fossils based, nuclear or “green” technologies with production EROIs (i.e. equivalent to the well head EROI for oil) above 20:1; most remain below 10:1.  I do think it feasible to go back above 30:1, in 100% sustainable fashion, but not along prevalent modes of technology development, social organisation, and decision-making.

The hard questions

So prevailing cognitive failure brings us back to Bohm’s “enquiry into the appropriateness of the question”.  In conclusion of a 2011 paper, Joseph Tainter raised four questions that, in my view, squarely address such an enquiry (Figure 9).[10] To date those four questions remain unanswered by both tenants of BAU and advocates of going 100% renewable.

We are in an unprecedented situation.  As stressed by Tainter, no previous civilisation has ever managed to survive the kind of predicament we are in.  However, the people living in those civilisations were mostly rural and had a safety net, in that their energy source was 100% solar, photosynthesis for food, fibre and timber – they always could keep going even though it may have been under harsh conditions.  We no longer have such a safety net; our entire food systems are almost completely dependent on that net energy from oil that is in the process of dropping to the floor and our food supply systems cannot cope without it.

Figure 9 – Four questions

perfectstorm2

Figure 10 summarises how, in my view, Tainter’s four questions, his analyses and mine combine to define the unique situation we are in.  If we are to avoid sliding all the way down the thermodynamic cliff, we must shift to a new “energy pool”.  In this respect, dealing with the SOC-like Perfect Storm while carrying out such a shift both excludes “shrinking”our energy base (as many “greens” would have it) and necessitates abandoning the present highly wasteful energy use paradigm – hence the shift from 17TW fossil to 50TW 100% solar-based and with over 80% useful uses of energy that I advocated earlier, over a 20 to 30 years timeframe.

Figure 10 – Ready to jumping into a new energy pool?

specialtimes

 

Figure 10 highlights that humankind has been through a number of such shifts over the last 6 million years or so.  Each shift has entailed:

(1) a nexus of revolutionary innovations encompassing thermodynamics and related techniques,

(2) social innovation (à la Cornelius Castoriadis’ imaginary institution of society) and

(3) innovations concerning the human psyche, i.e. how we think, decide and act.

Our predicament, as we have just begun to slide down the fossil fuels thermodynamic cliff, similarly requires such a nexus if we are to succeed at a new “energy pool shift”.  Just focusing on thermodynamics and technology won’t suffice.  The kind of paradigm change I keep referring to integrates technology, social innovations and innovation concerning the human psyche about ways of avoiding cognitive failure.  This is a lot to ask, however it is necessary to address Tainter’s questions.

This challenge is a measure of the huge selection pressure humankind managed to place itself under.  Presently, I see a lot going on very creatively in all these three intimately related domains.  Maybe we will succeed in making the jump over the cliff?

Bio: Dr Louis Arnoux is a scientist, engineer and entrepreneur committed to the development of sustainable ways of living and doing business.  His profile is available on Google+ at: https://plus.google.com/u/0/115895160299982053493/about/p/pub

[1] Dellingpole, James, 2013, “The dirty secret of Britain’s power madness: Polluting diesel generators built in secret by foreign companies to kick in when there’s no wind for turbines – and other insane but true eco-scandals”, in The Daily Mail, 13 July.

[2] As another example, Axel Kleidon has shown that extracting energy from wind (as well as from waves and ocean currents) on any large scale would have the effect of reducing overall free energy usable by humankind (free in the thermodynamic sense, due to the high entropy levels that these technologies do generate, and as opposed to the direct harvesting of solar energy through photosynthesis, photovoltaics and thermal solar, that instead do increase the total free energy available to humankind) – see Kleidon, Axel, 2012, How does the earth system generate and maintain thermodynamic disequilibrium and what does it imply for the future of the planet?, Max Planck Institute for Biogeochemistry, published in Philosophical Transaction of the Royal Society A,  370, doi: 10.1098/rsta.2011.0316.

[3] E.g. Murray and King, Nature, 2012.

[4] This label is a wink to the Sea People who got embroiled in the abrupt end of the Bronze Age some 3,200 years ago, in that same part of the world currently bitterly embroiled in atrocious fighting and terrorism, aka MENA.

[5] Tainter, Joseph, 1988, The Collapse of Complex Societies, Cambridge University Press; Tainter, Joseph A., 1996, “Complexity, Problem Solving, and Sustainable Societies”, in Getting Down to Earth: Practical Applications of Ecological Economics, Island Press, and Tainter, Joseph A. and Crumley, Carole, “Climate, Complexity and Problem Solving in the Roman Empire” (p. 63), in Costanza, Robert, Graumlich, Lisa J., and Steffen, Will, editors, 2007, Sustainability or Collapse, an Integrated History and Future of People on Earth, The MIT Press, Cambridge, Massachusetts and London, U.K., in cooperation with Dahlem University Press.

[6] See for example Armour, Kyle, 2016, “Climate sensitivity on the rise”, www.nature.com/natureclimatechange, 27 June.

[7] For a good overview, see Spratt, David, 2016, Climate Reality Check, March.

[8] For example, Jacobson, Mark M. and Delucchi, Mark A., 2009, “A path to Sustainability by 2030”, in Scientific American, November.

[9] Hall, Charles A. S. and Klitgaard, Kent A., 2012, Energy and the Wealth of Nations, Springer; Hall, Charles A. S., Balogh, Stephen, and Murphy, David J. R., 2009, “What is the Minimum EROI that a Sustainable Society Must Have?” inEnergies, 2, 25-47; doi:10.3390/en20100025. See also Murphy, David J., 2014, “The implications of the declining energy return on investment of oil production” in Philosophical Transaction of the Royal Society A, 372: 20130126,http://dx.doi.org/10.1098/rsta.2013.0126.

[10] Joseph Tainter, 2011, “Energy, complexity, and sustainability: A historical perspective”, Environmental Innovation and Societal Transitions, Elsevier





Why voting is fast becoming a farce……

17 06 2016

Unless you are Australian, dear reader, you may not know we are in the middle of one of the longest and most boring election campaigns this country has ever had to endure…. the party leaders are boring, visionless, ignorant, condescending, liars, dishonest, and I could go on….. and if you’re not Australian, I’ll bet you can recognise your own politicians in that list!

dinataleBut what got me inspired to write this piece, hot on the heels of the Great Leap Sideways, was the Australian Greens’ leader Richard Di Natale’s economic vision for Australia which just landed in my newsfeed…

Don’t get me wrong, he’s the standout nice guy compared to the morons leading the other parties, but this ‘economic vision’ had me rolling my eyes….. and on paper, he’s walking the walk, much as I am. He lives on a farm, in a solar powered off the grid passive solar house, raising animals ethically and growing much of his food. He’s been ‘there’ longer than I’ve been ‘here’, and I’m sure he’s also got loads more money, so he’s actually way ahead of me……. our goals are seemingly the same. However, it appears that as soon as one gets involved in politics, common sense just goes out the window.

He begins with “Let me start with a statement that you won’t hear from any politician during this election campaign. The fortunes and failures of Australia’s economy are largely hitched to the whims of the global marketplace and we politicians have limited control over Australia’s economic future.” He’s right of course….. so why get involved? The big end of town buys the best parliament money can buy, and the Greens don’t get a look in! So how do they combat this?  By appeasing them, even appealing to their greed!

Richard continues with “Governments are no longer in the driver’s seat. Rather their role is to ensure the air bag is able to cushion the impact on passengers when a crash occurs.” From where I sit, the airbags aren’t inflating.  Further down, “Governments have a role in addressing market failure and there is no greater example of market failure than dangerous global warming. The entire point of putting a price on greenhouse pollution is to internalize the externality of carbon pollution and to point us towards our inevitable economic future, with minimal economic disruption.”

Hmm….  methinks he’s never read Limits to Growth… and here’s the proof:  “The Greens plan for a new, clean economy would see GDP rise significantly, but that is not the only marker of progress.”

If ever there was one party that should be calling for an end to ‘jobs and growth’, it’s the Greens…. but instead, they try to appeal to the people who have been conned into believing that’s what we must have to ensure prosperity.

He goes on to ask “Where will our productive future lie?”, seemingly unaware that it’s this very ‘production’ that is the cause of the changing climate he correctly finds alarming.

Then, and this really got me glazing my eyes over, he delivers “Right now the CSIRO is piloting projects to create hydrogen through electrolysis from solar thermal power.[2] Gas and liquid fossil fuels could one day soon be replaced with pollution-free hydrogen in the use of energy, chemical feedstocks and vehicle fuels. We have the competitive advantages of sunlight, space and ingenuity, but we haven’t yet shown the political foresight to prepare.” So, he (and the CSIRO, obviously) have not heard of the energy cliff either……  I am actually appalled that the CSIRO are working on Hydrogen….. so much so, I hope Di Natale is wrong on this one.

Additionally, for a statement on the economy, there is zero mention of our debt predicaments….. it’s like the single biggest economic problem we face just doesn’t exist.

About all you can achieve by voting this year is to stop the most evil of the big parties to fail gaining office, because not one single one of them will avert the looming calamities facing us all.





Explaining the energy cliff

19 03 2016

While doing mindless tasks on the Fanny Farm, like dragging Macrocarpa branches around to clear the deck for the house building and stacking it on the back of the ute for removal, I tend to do a lot of thinking to keep the brain engaged…… and it occurred to me that very few people ‘get it’ when it comes to the predicament we here at DTM know as the Energy Cliff.

Now I expect nearly all my readers would know what I’m talking about, but likely have the same problem whenever trying to get people to understand what we are on about. So I came up with a metaphor that hopefully simplifies the concept for the masses.

I’m going to break some rules here, but the idea of this metaphor is not to come up with an accurate mathematical and/or physical model, rather a simple way to explain why we are fast running out of energy, even as we extract ever more oil and coal out of the ground.

It’s generally accepted that way back in the 1930’s the ERoEI of oil was 100:1; which means that for every unit of energy invested in finding, extracting, and refining this oil, 100 units were available to do work.  You know……. stuff like build the 20th Century!

This is where I start breaking rules.  I know that ERoEI is not an efficiency number, but I’m going to use it that way because in many ways it is like efficiency.  And for ease of using numbers, I’m going to say that that 1930’s oil had an energy efficiency of 100% – and yes, I know nothing has an efficiency of 100%.  Just bear with me….. this isn’t an exercise in maths and science, it’s a thought provoking process.

If you are unfamiliar with the energy efficiency calculations for a whole system, rather than a single part of that system, then the way it’s done is that you multiply the efficiency factors together (where 90% is 0.9, 75% is 0.75, and so on)

So if you have an energy source that is 90% efficient, running a motor that is 90% efficient, running a generator that is 90% efficient, and distributing electricity through a grid that is 75% efficient, then by the time the energy arrives at its destination, the efficiency of the system is 0.9 x 0.9 x 0.9 x 0.75 = 0.54675 or 54.675% efficient.  Three decimal places here is largely irrelevant.

This, by the way, demonstrates that complex systems made up of even very efficient components are not efficient!  And this is one of the dilemmas we face as we make our systems ever more complex….. even now.

This is not a problem when, like in the 1930’s, the system was not complex, and it was small, and the primary energy, oil, had an unbelievably high ERoEI to boot. So, to mine coal with an ERoEI of 90 in the US in the 1930’s had an ERoEI efficiency of 1.0 x 0.9 = 0.9.

Today, mining coal with an ERoEI of 50 with 12:1 oil gives us 0.12 x 0.5 = 0.06.

The nett energy efficiency available from coal has therefore dropped by a factor of 15!

Then consider this……  to use the above primary energies to make PVs with an ERoEI of 2.45:1 gives us nett energy efficiency of 0.0147.

And people out there actually want to power the world like this?

I know the maths are flawed, but is my thinking…?

 

 





Derrick Jensen interview at the Earth at Risk 2014 Conference

3 12 2014